Question

​(Three types of business​ organizations) Which of the following statements regarding a sole proprietorship are​ correct? ​(Select all that​ apply.) A. Sources of funds for a sole proprietorship typically include personal​ savings, as well as raising funds from a bank or personal loans from friends and family. B. Sole proprietorships are easy to set up with no paperwork required before the business can be opened. C. The sole proprietor is personally responsible for all debt of the sole proprietorship. D. One advantage of the sole proprietorship is that the survival of the firm does not depend upon just one person.

Answer 1

Answer:

A. Sources of funds for a sole proprietorship typically include personal​ savings, as well as raising funds from a bank or personal loans from friends and family.

C. The sole proprietor is personally responsible for all debt of the sole proprietorship.

Explanation:

• In a sole proprietorship business organisation type, the individual is the total owner of the assets and liabilities in the organisation.
• The operations of the organisations are solely determined by him or her.
• The survival of the business solely depends on the actions of the sole proprietor.